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Sep 30, 2022
Reliance Steel Q3 2022 Earnings Report
Reported solid financial performance driven by its proven business model and strong operational execution.
Key Takeaways
Reliance Steel & Aluminum Co. reported strong Q3 2022 financial results, with net sales of $4.25 billion, a 10.4% increase year-over-year. The company achieved EPS of $6.45 and record quarterly cash flow from operations of $635.7 million. Despite declining metal prices impacting gross profit margin, the company's diverse operations and focus on customer service contributed to the positive results.
Net sales for the quarter reached $4.25 billion, a 10.4% increase year-over-year.
The company reported a strong EPS of $6.45 and a non-GAAP EPS of $6.48.
Reliance generated a record quarterly cash flow from operations of $635.7 million.
Approximately 1.9 million common shares were repurchased during the quarter for a total of $336.7 million.
Forward Guidance
Reliance expects healthy demand trends to continue into the fourth quarter despite prevailing macroeconomic uncertainty. The Company estimates its tons sold will be down 6.5% to 8.5% and non-GAAP earnings per diluted share in the range of $4.30 to $4.50 for the fourth quarter of 2022.
Positive Outlook
- Healthy demand trends are expected to continue into the fourth quarter.
- Stable pricing for higher value products sold into the aerospace, energy and semiconductor end markets.
- Toll processing services will remain solid in the fourth quarter of 2022.
- Semiconductor demand remained robust during the third quarter and continues to be one of Reliance’s strongest end markets.
- Demand in commercial aerospace will continue its steady improvement in the fourth quarter of 2022 as build rates increase.
Challenges Ahead
- Shipment levels will be impacted by normal seasonal factors, including fewer shipping days in the fourth quarter.
- Shipment levels will be impacted customer holiday-related extended shutdowns and vacation schedules.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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